0.3 Business Model
Peloton is a fitness brand that caters to celebrities, tech-savvy people, and middle-class
to upper-class fitness fanatics. The company provides social features, convenience,
improved customer experience, instructor-led exercises, and interactive sessions. Its
business model is capture in key segments such as
Value propositions, Channels, Customer segments, Revenue streams, Key activities, Key
partners, and cost structure.
Peloton is a fitness brand that offers a sense of belonging, improved customer
experience, and more successful workouts. It operates through physical studios,
websites, apps, social media, and customer connections. Peloton's revenue streams
include sales of technology, clothing, accessories, and fitness equipment, as well as
monthly membership plans. Key resources include fitness instructors, personnel, media
partnerships, equipment, manufacturing alliances, and infrastructure. The brand's main
activities include product development, research and development, manufacturing,
delivery, marketing, branding, content production, sales, customer support, fitness
courses, celebrity classes, and unique events. Peloton's cost structure includes staff and
instructor salaries, administrative expenses, physical infrastructure maintenance,
branding, marketing, and shipping.
The manufacturer of fitness subscriptions and high-end exercise announce 500 jobs
losses lost as part of its fourth round of layoffs in 2021. The layoffs were a part of a
broader reorganisation that also involves outsourcing manufacturing, 50% less member
services, and contracting out last-mile deliveries to third parties. In Q3 2021, Peloton's
revenue dropped by around 30% while net membership increases were almost non-
existent. Figures 1 and 2, respectively, display the cash flow and the income statement
(Peloton Interactive, Inc. (PTON)., 2023).